The ratings on LOOP LLC reflect its dominant market share as the sole deepwater offshore port in the Gulf of Mexico and relatively stable and predictable cash flows. Weaknesses include the company's aggressive financial leverage and competition from short hauls and lightering. Further enhancing the ratings on LOOP are the company's throughput and deficiency agreements (several, not joint) with its owners, all of which are large, solidly investment-grade oil companies. Pro forma for the $120 million (series 2007B) debt issuance, LOOP will have approximately $518 million in debt, adjusted for operating leases and postretirement benefit obligations. Standard&Poor's Ratings Services considers LOOP's business profile satisfactory. LOOP owns and operates a deepwater oil port 18 miles off the Louisiana coast
